By C. Jarrett Dieterle

Introduction In January 2020, the world of alcohol rules seemed to be mired in a kind of stasis. It had been 85 years since Prohibi琀椀on, but the broad legal structure governing alcohol remained remarkably unchanged. Just three months later, in March 2020, everything changed. The COVID-19 global pandemic that gripped America and the broader world led to unprecedented realignments in our way of life. Governments began issuing mask mandates, social distancing orders, and even rules around how—and if—businesses could con琀椀nue opera琀椀ng. In response, innova琀椀ons like to-go and delivery alcohol took hold across the country, leading to a substan琀椀al shi昀琀 in how alcohol was regulated. Now, three years later, opposi琀椀on to these changes has started to become more prevalent. Most of the pushback has been focused on concerns that less stringent alcohol regula琀椀on could create nega琀椀ve externali琀椀es. One of the prime areas of concern has been underage drinking and whether enhanced alcohol delivery will lead to a spike in youth drinking across the country. This study breaks down the latest underage drinking data to help provide a more informed debate around America’s pandemic-era alcohol reforms.

R Street Shorts No. 128, Washington, DC: R Street, 2023. 7p.

By C. Jarrett Dieterle

When it comes to having alcoholic beverages delivered to our doors, America is in a very different place today than it was 24 months ago. As COVID-19 spread across the world, markets were forced to adapt to the delivery economy model that has dominated throughout the pandemic. Although the sale of most goods could readily be converted from brick-and-mortar purchases to doorstep shipping, alcohol was a notable exception. Many states still prohibited liquor stores, grocery stores and alcohol producers from delivering alcohol locally to consumers’ homes, and nearly every state prohibited restaurants and bars from selling alcohol “to-go” or via delivery. And while wineries were able to ship their bottles to customers in most states, distilleries and breweries were largely barred from the direct-to-consumer (DtC) shipping market. The COVID-19 effect on alcohol delivery and shipping has been both broad and deep. As of last fall, the vast majority of states had passed at least some type of alcohol delivery reform, if not multiple reforms. In fact, many states are still actively considering alcohol delivery legislation or planning to do so in the years ahead. As alcohol delivery has taken off, pushback has emerged. Although much of the pushback can be attributed to protectionist impulses by industry stakeholders, some of the concern stems from health and safety concerns like underage drinking as well as driving under the influence. As more lawmakers across the country consider the future of alcohol delivery in their states, it is important to understand these concerns and engage in data-driven investigations of their legitimacy.

R STREET SHORTS NO. 113 April 2022, 5p.